COMPANY NEWS

COMPANY NEWS; PENTHOUSE MAGAZINE'S PUBLISHER FILES FOR BANKRUPTCY

Published: August 13, 2003

General Media Inc., the publisher of Penthouse Magazine, filed for bankruptcy protection yesterday after competition from other outlets left the company unable to pay its creditors. The company missed payments on $41.8 million of bonds in April. General Media, a unit of Penthouse International, is 85 percent owned by Bob Guccione, who founded Penthouse in 1965. The company said it had from $50 to $100 million each in assets and debts in papers filed in United States Bankruptcy Court in Manhattan. General Media, which is based in New York, said it closed a $5 million bankruptcy credit line. Penthouse International did not file for bankruptcy protection.